Washington, DC CNN —After moving higher the past two weeks, mortgage rates fell this week, dropping to the their lowest level since May 2023.
Mortgage rates remain more than a full percentage point lower than their highest levels of last year: 7.79%.
However, he added, as more buyers come in off the sidelines attracted by lower rates, more pressure will be placed on already depleted inventory for sale.
“In some markets, however, prices will rise much faster this year.”Still, lower rates can improve affordability by reducing the costs of financing a home.
“On a loan to purchase a $400,000 home, a one percentage point decrease in mortgage rates can lead to a $250 drop in the typical monthly payment,” Sturtevant said.
Persons:
Freddie Mac, who’ve, ”, Sam Khater, Freddie Mac’s, Lisa Sturtevant, Sturtevant, ” Sturtevant
Organizations:
DC CNN, “, homebuyers
Locations:
Washington, DC